EUR/USD seen extending the decline to 1.2050 – UOB

FX Strategists at UOB Group noted EUR/USD could grind lower to the mid-1.2000s in the next weeks.

Key Quotes

24-hour view: “Our expectation for EUR to ‘weaken further’ did not materialize as it traded in a quiet manner between 1.2092 and 1.2130 before closing slightly higher at 1.2118 (+0.10%). The movement is viewed as part of an on-going consolidation phase. In other words, EUR is likely to trade sideways for today, expected to be within a 1.2100/1.2145 range.”

Next 1-3 weeks: “There is not much to add to our update from yesterday (14 Jun, spot at 1.2110). As highlighted, EUR ‘is likely to trade with a downward bias towards 1.2050’. At this stage, the prospect for a sustained decline below 1.2050 is not high. On the upside, a break of 1.2180 (no change in ‘strong resistance’ level) would indicate that the current downward pressure in EUR has eased.”